1. Initial public offerings (IPOs) were covered in the chapter. Let’s take a closer look at the two actual issues. Go to www.hoovers.com/global/ipoc/index.xhtml. (of the website does not work please use any website to complete the task) For the first two issues under “Latest Pricings,” do the following steps all the way through, one company at a time. Use the menu in the top left margin to navigate the IPO.

a.) Click on and write down the company name.

b.) Write a short paragraph about what the company des or its problem.

c.) Scroll down and record the date the company went public.

d.) Write down the actual offer price

e.) Write down the offerings amount (mil)

f.) Record the name of the lead underwriter.

Jones Inc. issues $5,000,000 of 5% bonds that pay interest semiannually and mature in 10 years. Compute the bonds’ issue price and write down the corresponding journal entries assuming that the bonds’ effective interest rate is:

1) 4% per year market rate semiannually and please tell whether the bond is issued at a premium or discount. Please write down the appropriate journal entries for this discount or premium.

2) 6% per year market rate semiannually and please tell whether the bond is issued at a premium or discount. Please write down the appropriate journal entries for this discount or premium.

3) With the 6% per year market rate semiannually, please write down the journal entries reflecting this amortization of the premium or discount at the end of the first year (2 payments).

2. During the Covid-19 outbreak, restaurants have been deciding between temporarily shutting down and staying open to serve meals to a small number of customers. A firm that shuts down decreases some but not all of its costs. What type of costs will a restaurant save by shutting down? What costs will it have to pay even if it is shut down? Fully explain your answer including an example of each type of cost.

3. “Unlike the bigger, well-capitalized car companies, the thousands of parts firms that feed

   the industry’s global supply chain operate closer to the edge with less of a cash cushion...”

Why are there only a small number of auto companies, but “thousands of auto parts firms?” Be thorough with your answer including relevant economic terminology and graphical analysis.

1. The coils have the direction of the wrapped turns indicated on the top: if you look down from above the direction is clockwise. Using the right hand rule, what is the direction of the area vector for these loops of wire?

   		up
   		down
   		clockwise
   		counter-clockwise

Question 3

1. If the magnet is allowed to fall with its north pole down, that is, entering the coil first, in what direction does the magnetic field point?

   		up
   		clockwise (when viewed from above)
   		counter-clockwise (when viewed from above)
   		down

Question 4

1. Given the two directions in your answers to the previous two questions, what is the sign of the magnetic flux?

   		positive
   		negative
   		zero

Question 5

1. As the magnet enters, what will be the sign of the induced emf?

   		negative
   		zero
   		positive

a) A child slides down a water slide at an amusement park from an initial height h. The slide can be considered frictionless because of the water flowing down it. Can the equation for conservation of mechanical energy be used on the child?

YesNo     

(b) Is the mass of the child a factor in determining his speed at the bottom of the slide?

YesNo     

(c) The child drops straight down rather than following the curved ramp of the slide. In which case will he be traveling faster at ground level?

following the curved rampdropping straight down     same speed in either case

(d) If friction is present, how would the conservation-of-energy equation be modified?


(e) Find the maximum speed of the child when the slide is frictionless if the initial height of the slide is 13.5 m. (Assume the child is initially at rest.)
m/s

In August 2010, Massachusetts enacted a 150-day right-to-cure period that mandates that lenders give homeowners who fall behind on their mortgage an extra five months to become current before beginning foreclosure proceedings. Policymakers claimed that the policy would result in a higher proportion of delinquent borrowers becoming current on their mortgages. To test this claim, researchers took a sample of 244 homeowners in danger of foreclosure in the time period surrounding the enactment of this law. Of the 100 who fell behind just before the law was enacted, 30 were able to avoid foreclosure, and of 144 who fell behind just after the law was enacted, 48 were able to avoid foreclosure. Let p₁and p₂ represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted, respectively. Which of the following is the appropriate test statistic value to analyze the claim at the 10% significance level?

• t₂₄₃ = −0.549

• z = 0.549

• t₂₄₃ = 0.549

• z = −0.549

Question 12 is updated. Please answer quickly.

12. Assume that Exhibit B.1 summarizes the 2010 population in the United States by race and gender. Exhibit B.2 presents the number of US residents in the four race/gender categories with each of five different risk factors. Use Exhibit B.3 as a template to calculate the prevalence rate (per 100) of these five risk factors among the four race/gender categories.

B1 White Males 110,941, White females 112,613, Black Males 18, 596, Black Females 20,333

B 2 is the prevalence in thousands. Need to calculate the Prevalence rate in B3

Prevalence (in Thousands)                  Prevalence rate (per 100)

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TT Lodging Establishment’s internal financial data is presented as follows: Financial Data: 2010 2011 Available Rooms 24,400 24,400 Occupancy % 72.00% 81.00% ADR $158.00 $166.00 Total #of Guests 12,410 15,330 Total Food Revenue $806,650 $1,287,720 Gross Operating Profit $486,000 $511,000 Total #of Food Plates 82,000 93,000 Total #of Seats in F&B Outlets 102 102 Rooms Occupied by Two or More People 3,000 3,850 Using the internal financial data table demonstrated above, calculate Revenue per Available Room (RevPAR), Revenue per Available Customer (RevPAC), Gross Operating Profit per Room, Average Food Service Check, Average Guest Occupancy per Room Sold, Multiple Occupancy, and Seat Turnover RESPECTIVELY for JTT Lodging Establishment in 2011 (assume that there are 365 days in a year and all F&B outlets are open 365 days in a year)

1a. From about some time in the 1950s until about 2010, prime age male labor force participation declined. This would tend to:

(a) shift both the short-run and the long-run aggregate supply curves to the left

(b) shift both the short-run and the long-run aggregate supply curves to the right

(c) shift only the short-run aggregate supply curve to the left

(d) shift only the long-run aggregate supply curve to the left

2a. In the 1970s, there was a large and sustained increase in the price of oil, as a result:

(a) both the short-run aggregate supply curve and the long-run aggregate supply shifted to the left

(b) only the long-run aggregate supply shifted to the left

(c) the aggregate demand curve shifted to the left

(d) the short-run aggregate supply curve shifted to the left and long-run aggregate supply did not shift

3a. Suppose that Congress passes an investment tax credit that is sustained and eventually leads to a higher level of capital. At first ____________________, and over a longer period of time, the long-run aggregate supply curve will _____________.

(a) only the long-run aggregate supply curve shifts and it shifts to the right, the long-run aggregate supply curve will shift to right a bit more

(b) only the aggregate demand curve changes and it shifts to the left, remain

(c) only the long-run aggregate supply curve shifts and it shifts to the right, the long-run aggregate supply curve will return to its original position

(d) only the aggregate demand curve changes and it shifts to the right, also shift to the right

In 2010, UBS Bhd. issued RM500 million of 4.5% senior unsecured six-year convertible bonds. The bonds were issued at the face value of RM1,000 per bond. The conversion price is RM38.75 per share, in which is a premium of 35% to the recent stock price.

Required:

(i) Suppose that the yield on bond is 5.5% and the bondholders can redeem the bond at a premium of 10% to their nominal value upon maturity, analyse the floor value of bond.

(ii) Analyse whether the bondholders should convert the bonds, given that the share price of UBS in 2016 is RM45.

Analyse also the additional shares will UBS need to issue if the bondholders do convert the bonds.